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What is a Loss Leader?

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kroger loss leaders

The current Kroger ad reminded me to write a post about what a loss leader is. All grocery and retail stores advertise loss leaders as a way to draw you into the store. Basically a loss leader is an item that is at rock bottom price. It is usually at or below market price. The store’s goal is to get the consumer excited about the low price and entice them to shop. Once the consumer is at the store, the hope is they will spend money on other items to make up for the loss leaders.

This week at Kroger the blackberries and pineapple are loss leaders. I have never seen prices that low for these two items! I will certainly be taking advantage of these loss leaders. If they are out of stock, make sure to get a raincheck.

kroger ad

Remember that not all items listed in the weekly circular are at a sale price. Just because it is in the ad, doesn’t mean it is a good price. There are usually only a few items in each ad that true loss leaders. Let’s look at some other items in the Kroger ad. The above items are advertised as new everyday low prices. In fact they say in the ad “prices now lower than ever”. Since I type up the Kroger ad each week, I can tell you that these are not truly lower prices!

Michelina’s entrees are normally $1 and sometimes even lower priced. Two liters of soda at $1.50 is not a low price. We don’t buy soda now but $1 for a 2-liter would be a good price. And Tide is just ridiculously expensive in my opinion!

Even if you don’t use coupons, knowing what a good price is will save you money. Look for the loss leaders each week and stockup when you can. Remember a lot of produce can be frozen!


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